To obtain a money transmitter license, every state requires a surety bond. Depending on your state, this license may be called money remitter, money services business, check casher, or sales of check license.
A surety bond is made to protect the public. In basic terms, it guarantees your business will adhere to all laws and requirements in your industry. In the event your business conducts unlawful acts, a consumer of your services may file a claim on the bond.
Nearly any company that offers payment services requires a money transmitter bond. Due to a history of fraudulence and inaccurate money transmissions, state agencies now require this bond to protect consumers. While this bond does not protect the business owner, it offers proof that your business handles clients’ money responsibly.
The cost of the bond, the “premium,” depends largely on the bond amount and the applicant’s financial status. The state requiring the bond determines the amount. At Surety 1, we will find you the lowest quote for your bond, starting at only 1.5% of the bond amount.
In order to get your money transmitter’s business license, you’ll need a bond. This bond guarantees the money transmitter will abide by the laws and regulations stated in Chapter 560 of the Florida Statutes along with other Florida state laws.
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
The bond amount is must be equal to 2% of the total amount of finances handled by the business the previous fiscal year. For a new business, however, the bond amount must be 2% of the projected money handled.
The exact bond amount should be verified with the Office of Financial Regulation before applying for the bond in order to guarantee the amount is correct.
These are additional details about the licensing process that you should be aware of. (Only the bond is handled at Surety1, but this information will help you get your license.)
The state-issued application packet must be completed for a license. Fees for a license include a $40 filing fee, $375 application fee + $30 for every additional location. The licensing fees are required by the obligee, not the surety company.
The license application requires several supporting documents:
The license application can be filled out using an electronic system referred to as NMLS. Businesses that are not conducting multi-state businesses, or those that do not want to use the electronic application system, can also have access to other application forms.
Money transmitters in Florida must also register as a money services business (MSB) with the Federal Crimes Enforcement Network (FinCEN). The registration process must be completed by the Bank Secretary Act (BSA) e-filing system.